Bill BL2018-1283 (as amended)

An ordinance amending Chapter 5.04 of the Metropolitan Code to restrict the use of proceeds from the sale of real property owned by the Metropolitan Government of Nashville.

WHEREAS, section 2.01(5) of the Metropolitan Charter authorizes the Metropolitan Government to purchase, lease, construct, maintain or otherwise acquire, hold and operate any building or other property, real or personal, for any public purpose, and to sell, lease or otherwise dispose of any property, real or personal, belonging to the metropolitan government; and

WHEREAS, section 2.24.250.C of the Metropolitan Code of Laws provides that proceeds from the sale of surplus real property shall be deposited in the general fund of the district from whose operating budget the last department, commission, board or agency using the real property is financed; and

WHEREAS, the Metropolitan Code of Laws does not otherwise restrict the use of proceeds from the sale of Metropolitan-owned real property; and

WHEREAS, the use of proceeds from sales of real property owned by the Metropolitan Government for recurring costs and expenses does not generally constitute sound fiscal policy; and

WHEREAS, the Metropolitan Charter, Sec 2.01(40) authorizes the Metropolitan Government to pass all ordinances necessary for the health, convenience, safety and general welfare of the inhabitants, and to carry out the full intent and meaning of this Charter, as fully as if specifically authorized.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That Title 5 of the Metropolitan Code of Laws shall be amended by inserting into Chapter 5.04 a new section 5.04.140 as follows:

Section 5.04.140 – Prohibition on use of real property proceeds

Proceeds from the sale of real property owned by the metropolitan government shall not be used for operating expenses of the metropolitan government.

Proceeds from the sale of real property owned by the metropolitan government, other than real property acquired pursuant to section 67-5-2501 of the Tennessee Code Annotated, shall not be relied upon as a funding source for operating expenses in any proposed operating budget.

Any proceeds from the sale of real property owned by the metropolitan government, other than real property acquired pursuant to section 67-5-2501 of the Tennessee Code Annotated, shall be used exclusively for the payment of debt services or the purchase other real property.

This section is not intended to interfere with the procedures for the disposition of property for the Metropolitan Government pursuant to Chapter 2.24, Part II, of the Metropolitan Code of Laws.

Section 2. The provisions of this Ordinance shall apply to the sale of real property from and after July 1, 2019.

Section 3. This ordinance shall take effect from and after its final passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.